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HMRC internal manual

Film Production Company Manual

Claims: payment of credit

CTA2009/S1203; ICTA88/S826(3C)

Set off against other liabilities

Any amount of film tax credit to which a film production company (FPC) is entitled, and which it claims, must be paid to it except that:

  • if the FPC owes Corporation Tax, then the credit (and any interest due to the company) may be used to offset the liability;
  • if the FPC has outstanding or purported liabilities for PAYE, deductions under section 966 ITA2007 (visiting performers) or Class 1 national insurance contributions for the period for which the credit is owed, then no payment need be made; and
  • if the FPC’s Corporation Tax return for the period in question is enquired into by HMRC, then no payment need be made, but a provisional partial payment may be made if appropriate.

S130 FA2008 also allows HMRC to offset a credit against any existing debt. This is regardless of whether the payment falls within the same accounting period.

Repayment interest

Payment of film tax credit will carry interest from the later of:

  • the filing date for the FPC’s tax return for the period in relation to which the credit is payable, and
  • the date on which the tax return (or amended return) in which the claim is included was delivered to HMRC.